Why do most marketing campaigns generate a loss in the first three months
Neil Patel, a UK based entrepreneur and renowned expert in web analytics, collaborates with companies of all levels: from startups to large corporations.
Based on his many years of experience, he has come to an interesting conclusion: most commercial organizations, regardless of their size, suffer losses in the first three months after launching a new marketing campaign because it proves to be ineffective.
Let’s find out what causes Neil Patel to be the fragility of most marketing campaigns, and look at ways to address these issues.
Some marketing strategies (such as content marketing) are only effective if they are carried out without interruption for a sufficiently long period. If they are stopped and restored after a while, there will be no effect.
Therefore, you need to set your budget correctly, keeping in mind the type of marketing campaign you plan to run. You do not have to rely on using certain methods for several months and then act on the results. Ie refreshes them if they were effective and drop them in case of an unsuccessful end.
Your investment in external marketing is unlikely to return in the first three months
Of course, if you chose a pay-per-click advertising campaign, you can stop it in the event of a low-profit margin. However, most marketing campaigns act differently. Hence the conclusion: Plan your marketing budget on an annual basis, rather than quarterly.
Many businessmen cannot resist the temptation to copy the methods of their competitors. Instead of using at least a drop of creativity, they simply use ready-made solutions and then wonder why the results are not desired.
The point is that the methods that have proven effective for your competitors are not always appropriate for your company. Imagine that your competitors do not engage in contextual advertising for the first time. Because they have higher Adwords quality systems, they will pay less per click. If you have just started a campaign like this and decide to emulate them, your Quality Score will be lower, which means that you will pay more.
Use creative marketing tactics instead of spending a lot of money on traditional channels used by your competitors. You will no longer justify your inaction with a lack of money because there are many effective ways to attract customers, even with a limited budget.
Achieving a positive return on investment in the short term is not an easy task, but it is not impossible either. For its implementation, you have to split your marketing campaigns into two parts. The first one should aim for revenue over the next few months and the second one for the long term.
Campaigns such as pay-per-click advertising or remarketing typically generate revenue for a month or two. And methods like website optimization, SMM marketing and content marketing have a long-lasting return.
Before embarking on your marketing campaign, it is advisable to pick up a few techniques that will make you a quick profit. You need to apply several tactics, not one, as not all of them will produce the expected results.
Once you start earning money from your current campaigns, you can start investing in long-term campaigns. Doing so will reduce your financial losses so that your marketing campaigns begin to fund themselves.
In all likelihood, you will pay more attention to the profitability of each visit to your site rather than the continued value of your customers.
For example, you spend $ 1,500 on a pay-per-click advertising campaign, and you get $ 3,000 in return. This kind of campaign seems to be a success for most of us, so we keep track of the revenue from each visit.
However, a more important factor is the continued value of customers. For example, if a customer brings you $ 3,000 in the first year but 15,000% in the first three years, hypothetically, you can spend up to $ 14,990 on marketing right away, provided you have no other costs. Suppose you do not want to spend such a large amount to attract customers. But if you increase your pay-per-click advertising costs by at least $ 1500 to $ 3000, you will find that your revenue will be twice as big.
Optimizing your marketing campaigns should not be based on profit for each visit to the site. Instead, you should focus on long-term value metrics, as they will help you attract more customers and make more profit.
Most marketers consider increasing traffic is the most important component of any marketing plan. But the problem is that transcendental traffic does not always guarantee higher profits.
The duties of marketers include not only driving site traffic but also turning potential customers into permanent customers. This means that they need to control the costs of irrelevant traffic, as well as look for ways to change web pages and content to increase conversion rates. In this case, the importance of A / B testing increases. This is a marketing technique used to evaluate the effectiveness and management of a web page. This method is also called split testing, and you must include it in your arsenal. Imagine if you could increase your conversion rate 2-3 times, you would need 2-3 times less costly to attract new customers.
You have to be patient
Neil Patel’s argument shows that marketing strategy is no less important than marketing tactics themselves. Before launching a new marketing campaign, you must clearly state your goals and identify the most effective ways to achieve them. The strategy is like a flashlight that illuminates your path: without a strategy, you will simply wander in the dark and waste time and money in vain.
Do not strive to get everything right and at once, every single thing over time. Can you house a three-story house in three months? Or to lose 20 kg in one month. of your weight? You can certainly overcome these appearances, but the results will only be temporary. If we focus on long-term success, including in the field of marketing, you need to be patient.